The Acid-Test Ratio

question 54

Multiple Choice

The acid-test ratio:

• A)Is also called the quick ratio.
• B)Measures profitability.
• C)Measures inventory turnover.
• D)Is generally greater than the current ratio.
• E)Is not used by merchandise companies.

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Definitions:

Product-oriented Layouts

Layouts designed to streamline production by arranging equipment and processes in sequences that align with the product flow.

In-process Inventories

Goods and materials that are currently within the manufacturing process but not yet completed.

Equipment Assignments

The process of allocating machines, tools, or other equipment to specific jobs or locations within an operation.

Layout Type

Refers to the arrangement or setup of resources, such as machinery and equipment in a factory, which affects workflows and operational efficiency.